HomeMy WebLinkAboutPO 6895: AUTHORIZING THE SALE OF COMMERCIAL PROPERTY LOCATED AT 449 AUSTIN AVENUE (CITY OF PORT ARTHUR HEALTH DEPARTMENT BUILDING) P. O. No. 6895
09/02/2020 gt/vrt
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE SALE OF COMMERCIAL
PROPERTY LOCATED AT 449 AUSTIN AVENUE (KNOWN AS THE CITY
OF PORT ARTHUR HEALTH DEPARTMENT BUILDING AND ADJACENT
PARKING TRACTS) TO AURORA CAPITAL HOLDINGS, LLC,
CONTINGENT UPON THE APPROVAL AND EXECUTION OF
ADDITIONAL REQUIRED LEGAL DOCUMENTS
WHEREAS, pursuant to Ordinance No. 12-75, City Council created the Downtown
Tax Increment Reinvestment Zone (Downtown TIRZ #1) for the redevelopment of the
downtown area; and,
WHEREAS, consistent with the City's Downtown Plan and pursuant to Ordinance
No. 19-18, the City Council updated the Downtown TIRZ Project Plan and Financing Plan to
facilitate further development in downtown; and,
WHEREAS, Aurora Capital Holdings, LLC, a Delaware limited liability corporation,
("Aurora") has proposed the redevelopment of a portion of downtown through
presentations before the Board of Directors of the Downtown Tax Increment Reinvestment
Zone TIRZ #1; and,
WHEREAS, Aurora has proposed purchasing the existing City of Port Arthur Health
Department Building located at 449 Austin Avenue and the adjacent parking tracts, which
are located in the reinvestment zone described above, at its appraised value of$1,728,500,
and to facilitate the relocation of the Health Department to a new location being 5860 9th
Avenue (the "Ninth Avenue Property"); and,
WHEREAS, under Chapter 380, Local Government Code, and Chapter 311, Tax
Code, the City of Port of Port Arthur (the "City") is authorized to enter into agreements to
implement programs for the economic development and redevelopment of the City; and,
s.po6895
WHEREAS, before land owned by a political subdivision of the state may be sold,
certain requirements set forth in Section 272.001 of the Texas Local Government Code
must be met. However, pursuant to Section 272.001(b)(6) of the Texas Local Government
Code, these requirements do not apply to a municipality's land that is located in a
reinvestment zone designated as provided by law and that the municipality desires to have
developed under a project plan adopted by the municipality for the zone; and,
WHEREAS, it is deemed in the best interests of the public to authorize the sale of
the City's existing Health Department located at 449 Austin Avenue (Lots 1 through 12, in
Block 132 of the City of Port Arthur) and the adjacent parking tracts (Tract 10-A and Tract
13-A of a replat of all of Lots 10-18 Block 109 of the City of Port Arthur) for the purchase
price of $1,728,500, contingent upon the subsequent approval of the City Council and the
execution of the following items:
1. A resolution authorizing the finalized Development Agreement pursuant to
Chapter 311 of the Texas Tax Code and 380 of the Texas Local Government
Code executed by Aurora Capital Holdings, LLC and the City of Port Arthur and
authorizing the payment of the special property lien.
2. A resolution authorizing the finalized Lease Agreement as it pertains to the
Austin Avenue Property. The parties reserve the right to negotiate the monthly
lease amount and holdover amount. This provision will be updated upon
finalization of the lease agreement.
3. A resolution authorizing finalized Purchase Agreement for the property located
at 5860 9th Avenue, Port Arthur, Texas, specifying the detailed terms of the
transaction and other accompanying legal documents.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
s.po6895
Section 2. That the City Manager, or his designee, is authorized to execute the
Sale and Purchase Agreement for 449 Austin Avenue (the City's existing Health Department
and being Lots 1 through 12, in Block 132 of the City of Port Arthur) and adjacent parking
tracts being Tract 10-A and Tract 13-A of a replat of all of Lots 10-18 Block 109 of the City
of Port Arthur, and more particularly described in the Sale and Purchase Agreement in
substantially the same form as attached hereto as Exhibit"A", to Aurora Capital Holdings,
LLC in the amount of $1,728,500, contingent upon the subsequent approval of the City
Council and the execution of the following items:
1. A resolution authorizing the finalized Development Agreement pursuant to
Chapter 311 of the Texas Tax Code and 380 of the Texas Local Government
Code executed by Aurora Capital Holdings, LLC and the City of Port Arthur and
authorizing the payment of the special property lien.
2. A resolution authorizing the finalized Lease Agreement as it pertains to the
Austin Avenue Property. The parties reserve the right to negotiate the monthly
lease amount and holdover amount. This provision will be updated upon
finalization of the lease agreement.
3. A resolution authorizing finalized Purchase Agreement for the property located
at 5860 9th Avenue, Port Arthur, Texas, specifying the detailed terms of the
transaction and other accompanying legal documents.
Section 3. That a Special Warranty Deed will be approved by the City Council
upon its approval of the required documents.
Section 4. That a copy of the caption of this Ordinance be spread upon the
Minutes of the City Council.
READ, ADOPTED AND APPROVED on this day of September, A.D., 2020, at
a Council Meeting of the City Council of the City of Port Arthur, Texas, by the following
vote: AYES:
s.po6895
Mayor:
Councilmembers:
NOES:
Thurman Bill Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Valecia R. Tizeno, City Attorney
APPROVED FOR ADMINISTRATION:
Ronald Burton, City Manager
s.po6895
EXHIBIT "A"
TO BE PRESENTED AT OR BEFORE
THE COUNCIL MEETING
s.po6895